Computacenter PLC's (LSE:CCC) half-year figures showed the IT reseller in solid shape, but the standout was across the Atlantic.
Revenues in North America jumped 74% in the period, helping operating profit (EBITA) there nearly double, up 97%. That performance has made the region the group’s largest profit contributor for the first time.
UBS, which has nudged its price target from 2,700p to 2,750p and kept a Buy rating, reckons much of the strength was driven by demand for artificial intelligence infrastructure, even if management also pointed to traditional enterprise and public sector work.
The broker cautions that AI-related orders are lumpy by nature, but says it remains constructive on the outlook.
Elsewhere, the UK returned to growth after a long spell as a drag, and the company expects that to continue through the year. Germany was softer, weighed down by elections and a new government.
Computacenter also booked a £3 million exceptional cost tied to an aborted £1 billion acquisition.
With plenty of cash on the balance sheet, investors will continue to watch how the company deploys it, with management signalling that further deals, especially in North America, are the priority.
UBS has lifted its earnings forecasts modestly, by 1–4% for 2025–27, and argues that a return to more normal growth rates in 2026 should support a re-rating.
The shares, up 2% at 2,364p, trade on about 13 times earnings. Alongside Germany’s Bechtle, UBS continues to see Computacenter as a top pick in the sector.